The Hindu Business Line : ING Vysya hopes to reduce NPAs to 2 pc

ING Vysya Bank has said it expects the level of its bad loans to come down to two per cent of advances in the current fiscal from 2.6 per cent in December 2004.

"Our target is two per cent of net advances," said Mr Bart Hellemans, Managing Director and CEO of ING Vysya Bank, here on the sidelines of a press conference to announce a new branch in the city on Monday.

The bank, now in the midst of a rights issue, had seen its non-performance assets (NPA) levels coming down as part of a massive clean-up of its balance sheet it had carried out over the past couple of years. It wrote off assets and increased the provision for NPAs. In March 2004, the NPA level was 2.69 per cent.

ING Vysya Bank, in which Dutch financial institutions ING holds 44 per cent stake, is mobilising Rs 307 crore through the rights issue. Mr Hellemans said he did not expect the shareholding pattern of the bank to change following the issue as all shareholders would participate in it.

Asked whether ING would like to increase its holding in the bank, he said the present regulatory guidelines (regarding foreign investment in Indian banks) are ambiguous. "They are a bit vague," he said.

Mr Hellemans said the bank would go about its expansion in terms of more branches and ATM networks in line with the growth of its number of customers. "A branch is a consequence to your customer base," he said.

With the opening of the new branch in Kochi at Palarivattom, the bank has 455 branches, and 87 ATM centres. It has also tied up with other banks to share ATMs.

Mr Hellemans said interest rates were likely to move up by 25-50 basis points during the current fiscal going by the indications in the money market and other economic trends. "But I don't see the interest rates going back to the old days," he added.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Basel II Accord: More credits than debits

Gilts range-bound; rupee tad firmer

Aegon in talks with potential Indian partners

MetLife branch inaugurated at Mangalore

New norms for marine insurance schemes — IRDA dashes shipping cos' hopes to cut cost

Higher provisioning to trim United Bank's profit

IOB performance to be impressive, claims its CMD

ING Vysya hopes to reduce NPAs to 2 pc

Centurion Bank plans to launch credit card

SBIOA opposes move to dilute Govt equity in banks

IOB officers union against GDR issue

ICICI Group forays into realty — Arm sets up dedicated fund; partners Tishman Speyer